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How Is Constellation Energy Advancing the Clean Energy Shift?

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Key Takeaways

  • CEG is broadening its clean energy mix and plans to produce 100% carbon-free electricity by 2040.
  • The company offers products like CORe and EFECs to help businesses access carbon-free electricity.
  • CEG shares are up 49.1% in three months, outperforming the industry's 28.1% gain.

Constellation Energy Corporation (CEG - Free Report) is benefiting from renewable energy options in several ways, primarily by expanding its portfolio of clean energy sources, attracting environmentally conscious customers and enhancing its reputation as a leader in the transition to a carbon-free future. 

While CEG is a major player in the nuclear energy sector, it is also expanding its presence in renewable energy markets. This diversification helps it remain competitive and resilient in a changing energy landscape. CEG is developing new offerings that allow smaller businesses to participate in renewable energy projects, overcoming barriers like minimum energy commitments and high credit standards.

Constellation Energy offers various renewable energy solutions like offsite renewables (CORe), on-site solar projects and emission-free energy certificates (EFECs). CORe allows businesses to purchase power from offsite renewable energy projects, like wind and solar farms. It also provides on-site solar solutions, which can help businesses manage energy costs and improve energy reliability.

Constellation Energy's commitment to renewable energy aligns with the growing global focus on reducing carbon emissions and combating climate change. CEG is actively working to expand its portfolio of clean energy resources, including nuclear, hydro, wind and solar. Nearly 90% of CEG’s annual energy output comes from carbon-free sources, and it has set a goal to produce 95% carbon-free electricity by 2030 and 100% by 2040.

Other Utilities Focus on Renewable Operations

Some other utility companies that are also focused on expanding their renewable operations have been discussed below:

Dominion Energy’s (D - Free Report) long-term objective is to add more battery storage, solar, hydro and wind (offshore as well as onshore) projects by 2036 and increase the renewable energy capacity by more than 15% per year, on average, over the next 15 years.

NextEra Energy (NEE - Free Report) expects to add 36.5-46.5 gigawatt (GW) of new renewables in the 2024-2027 period to the generation portfolio. As of the first quarter of 2025, it had nearly 3.2 GW of renewable projects in its existing backlog. The company’s renewables backlog is now nearly 28 GW.

CEG Stock’s Earnings Estimates

The Zacks Consensus Estimate for Constellation Energy’s 2025 and 2026 EPS indicates an increase of 9% and 22%, respectively.

 

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CEG Stock Trading at a Premium

CEG is trading at a premium relative to the industry, with a forward 12-month price-to-earnings of 29.14X compared with the industry average of 20.89X.

 

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CEG Stock’s Price Performance

In the past three months, CEG’s shares have risen 49.1% compared with the industry’s 28.1% growth.

 

Zacks Investment Research
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CEG’s Zacks Rank

CEG currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 


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NextEra Energy, Inc. (NEE) - free report >>

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